31. A large corporation issued both fixed- and floating-rate notes five years ago, with terms given in the following table: (LO 10-4) 9% Coupon Notes $250 million 20 years 93 9% Fixed coupon Floating-Rate Note $280 million 15 years 98 896 Every year 1-year Tbil rate + 2% 0 years after issue 102 Issue size Maturity Current price (% of par) Current coupon Coupon adjusts Coupon reset rule Callable 10 years after issue Call price Sinking fund None Yield to maturity Price range since issued $85-$112 $97-$102 a. why is the price range greater for the 9% coupon bond than the floating-rate note? b. What factors could explain why the floating-rate note is not always sold at par value? . Why is the call price for the floating-rate note not of great importance to investors? d. Is the probability of call for the fixed-rate note high or low? e. If the firm were to issue a fixed-rate note with a 15-year maturity, callable after five years at 106, what coupon rate would it need to offer to issue the bond at par value? f Why is an entry for yield to maturity for the floating-rate note not appropriate? 32, A 25-year maturity, 7.4% coupon bond paying coupons semiannually is callable in six years at a call price of $1,180. The bond currently sells at a yield to maturity of 6.4% (3.2% per half-year). (LO 10-4) a. What is the yield to call b. What is the yield to call if the call price is only $1,130 . What is the yield to call if the call price is $1,100 but the bond can be called in three years instead of five years? 33. A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 72% and face value $1,000. Find the imputed interest income in the first, second, and last year of the bond's life. (LO 10-3)